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LONDON — Merck said Wednesday it is buying ophthalmology-focused startup EyeBio in a deal worth up to $3 billion, as the pharma company looks to diversify its pipeline.

Under the deal, Merck, through a subsidiary, will pay $1.3 billion in cash upfront, with another $1.7 billion potentially included if certain regulatory and commercial milestones are met. The Wall Street Journal first reported the news Tuesday night.

EyeBio has been developing a drug called restoret for a number of retinal diseases, including age-related macular degeneration and diabetic macular edema. It presented data in February from a Phase 1/2 trial of restoret in both conditions. Merck said it plans to move restoret into a pivotal trial for diabetic macular edema later this year.

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